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Re58,
The nature of an S corp. would prevent you from doing this because, by regulation, an S corp. can have only one type of stock.
There are ways to accomplish what you describe.
If you would like to discuss your specific situation (in confidence) send me a PM or contact me directly.
Sorry, but I have to disagree with you on this, Robert.
The way I look at it, there really isn’t anything that would keep an S-Corp from entering into a simple revenue sharing agreement. Think licensing, royalties, etc.
These types of agreements don’t have to be tied to company stock at all. So, there shouldn’t be any legal conflict assuming that the investor is aware that his investment won’t buy him a share of the company but rather a share of the company’s profits.
Mark
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